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Is another Hawaiian airline on the verge of failure?

Is another Hawaiian airline on the verge of failure?

As we approach the final day before learning whether Alaska Airlines receives approval to acquire Hawaiian Airlines, we also note that a key interisland carrier for Hawaii’s smaller islands is currently under significant pressure and under increased scrutiny due to a number of serious operational and financial challenges that raise doubts about its long-term viability.

Fleet stranding in Mokulele and operational disruptions.

Mokulele Airlines recently grounded part of its fleet for three days, which is worrying to say the least. The groundings were reported to the Hawaii Department of Transportation and were said to be due to maintenance deficiencies discovered during routine inspections.

This caused severe disruptions that affected many passengers. The airline operated at half capacity to Molokai and limited services elsewhere as well. Although the airline has tried to minimize the impact by working with other airlines, the situation has only heightened concerns about its reliability.

Financial difficulties and prospects of government assistance.

Mokulele’s financial problems are particularly evident in its operations on the island of Lanai. The airline has applied for government assistance under the Essential Air Service (EAS) program to maintain its service to Lanai, deeming it unprofitable without subsidies to maintain the route. Its website now states that Lanai is only accessible by charter flight.

The airline’s future on the island, as well as its overall financial health, remains uncertain as it continues to struggle with rising operating costs, lack of scale and fluctuating passenger demand.

Merger at Mokulele Airlines offers unique flights to HawaiiMerger at Mokulele Airlines offers unique flights to Hawaii

Mokulele is affected by public backlash and trust issues.

Mokulele’s problems have not gone unnoticed by the public. Many passengers have voiced their dissatisfaction here on Beat of Hawaii and in other forums. Complaints include the airline’s frequent cancellations, lack of communication, and inconsistent pricing. These problems have led to a decline in customer confidence and further complicated Mokulele’s efforts to stabilize its operations and finances.

Many travelers have expressed their deep dissatisfaction with Mokulele Airlines, particularly criticizing the customer service. Reviews describe the staff as rude, unhelpful, and even hostile. In one case, a customer was shouted at just for asking about his luggage.

Flight cancellations and sudden changes in schedule are commonplace, leaving passengers stranded without adequate communication or explanations. Baggage issues also plague the airline: their luggage often arrives late and passengers are left to collect it themselves without compensation. These recurring problems have led many to vow never to fly with Mokulele again, saying it is an unreliable and stressful choice for inter-island travel.

Mokulele Airlines is at a crossroads.

The airline is facing both operational disruptions and likely financial instability. The combination of these challenges has led to growing concerns about whether the airline can continue to operate effectively or if it is on the brink of collapse. As the situation develops, travelers should stay informed and consider alternative travel options within Hawaii.

Southern Airways Express, the parent company of Mokulele Airlines, has undergone significant changes, including a merger with Surf Air Mobility Inc. in 2023. Despite the potential benefits of the merger, Southern Airways Express has faced financial and operational challenges. For example, the company was recently fined $280,000 by the FAA for allegations that it operated flights with an unqualified co-pilot.

Do you fly with Mokulele? If so, please share your experience with the airline.

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